A recent IDC report found that the marketplace for dedicated data backup appliances is dominated by EMC, according to eWeek.

The study indicated that the Massachusetts-based company owns a little less than two thirds of the market for purpose-built backup appliances at 62 percent, the publication said. EMC's strong position is likely to prove profitable in the future, the analysis firm added, given its predictions of rapid growth for the market as a whole.

IDC said that PBBA revenue should increase at a compound annual growth rate of 25.6 percent through 2015, which would push the yearly total up to $5.3 billion by the end of that period.

"We believe this explosive growth will continue through 2015 and is a result of users' desire for improved backup window timing, faster recovery times, effective virtual server protection and seamless integration with existing backup applications. We also believe customers are gravitating towards PBBA solutions as a way to control their data protection capital and operational expenditures," IDC data protection and recovery research director Robert Amatruda told eWeek.

EMC said that effectively catering to customer demand for solutions that help enable other advancing technologies, like server virtualization and cloud computing, should allow EMC to consolidate its position atop the market, according to the news source.

One of the company's regional directors of project marketing for backup and recovery systems, Shane Moore, told eWeek that EMC's ability to scale to the degree demanded by highly virtualized and cloud-based systems is a powerful differentiator that helps drive its competitive gains.

"By implementing EMC PBBAs, customers have achieved an 81 percent reduction in time spent managing backups, average payback periods of seven months and a return on investment of 450 percent over three years," Moore said in an interview.

EMC's financial performance and stock price of late have clearly reflected the company's operational strength. According to Reuters, the firm's announcement this week that it would meet analyst targets of 9 percent annual growth sent shares on a 6 percent rise, helping to calm nervous investors who had recently been disappointed by less favorable results posted by rivals IBM and Oracle. EMC also has a history of outperforming its own predictions, the news agency noted, adding that some analysts believe the 9 percent figure may actually understate the company's true potential growth.

 

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